Even as Detroit races to turn-off the production spigot, dealer inventories are building to abandoned airfield levels. You want to talk trucks? In an industry where a 60-day inventory is ideal, every single GM truck has over a 100-day supply; some many more. While all three automakers swore they'd sworn off incentives (and blamed the move for reduced sales), that was then, this is now. Chrysler's Jim Press signals the fire sales to come. "It is inevitable from our standpoint because we have pricing pressure in terms of cost from steel and plastic," Press said during an interview with Dow Jones Newswires. "Incentives will be a key part but the focus will shift on those products that are facing the headwinds, such as trucks and SUVs, rather than those benefiting from the tailwind like cars." Chrysler? Cars? Tailwind? What tailwind? Anyway, the bottom line: "Chrysler's average incentive per vehicle sold in the U.S. in May was $3,714, the highest figure among the six top-selling auto makers for the month, according to Edmunds.com. Ford's average incentive totaled $3,326 followed by GM at $3,477. Nissan Motor Co.'s (NSANY) average U.S. incentive in May was $2,090, while Honda Motor Co. (HMC) was at $1,256 and Toyota was $1,045."

Motor Trend's Angus MacKenzie is pissed-off at the autoblogosphere for crapping on his advertisers' inability to predict the death of the great American gas guzzler. "Don't you love Monday morning quarterbacks? The blogosphere is in seven shades of schadenfreude this week as a shocked Detroit wipes away the blood in the aftermath of May's brutal sales slump: Why didn't Motown see this coming? We told them relying on big trucks and SUVs was a dumb idea. It was obvious gas prices were going to rise. Fire the idiots! Oh yeah? If you're reading this, I'll bet my 401k that like Rick Wagoner and company, four years ago you didn't figure you'd be paying over four bucks for a gallon of gas today. Because if you had, you would now be richer than Croesus, and lying on a tropical island somewhere, kicking back with a mojito or three, without a care in the world. Hey, we're all still writing blogs. We didn't see it coming this fast, either." Ah, this fast. And there's your Detroit excuse of the day, as laid out by GM CEO Rick Wagoner in this startling video. Oh, and this is all your fault. "Automakers grudgingly built the more fuel efficient cars the government ordered them to, but we bought gas-guzzling pickups and SUVs by the millions instead because, hey, gas was cheaper than water. Who needed to drive a girly gas-miser? So maybe we ought to ease up a little on the finger-pointing at Motown; the truth is we're all a little bit complicit here." Speak for yourself Angus. Oh wait…

TTAC is wounded. Site stability is an "issue," our page counter is still busted, I'm not sure what's going on with the RSS feed, TrueDelta links are MIA, the new site is still in development Hell and the Powers that Be be silent. But I know how to count my blessings. Family healthy, thank God. And I'm privileged to work with some of the most passionate, informed and entertaining writers and thinkers in the history of automotive journalism. First and foremost, Frank. Our Managing Editor is intelligent, indefatigable, perspicacious. I have no idea how I could run this website without Frank on the other end of the IM, setting 'em up so I can knock 'em down. Dealing with shit I can't stand so I can deal with the shit I can. Then there are TTAC's bloggers, editorialist and reviewers. Their dedication to our mission never, ever fails to reinvigorate my spirit. And Sam, my beautiful wife, who inspires and amuses me– and makes sure the writers get paid. And last but not least, I'm thankful for you, our Best and Brightest. You keep us honest and make us whole. There is no question in my mind that– together– we're bearing witness to an automotive sea change. These are horrible, fascinating times. I wouldn't want to share them with anyone else. 

What is it with Friday? Every time I think I've crossed the finish line, the bad news arrives like an uninvited guest. Of course, it's not all about me. It's about an entire industry facing cataclysmic change. Bloomberg reports: "Oil rose $11.33 to an all-time high $139.12 a barrel during trading. Crude oil surged more than $10 a barrel to a record as the dollar weakened after the U.S. unemployment rate grew the most in two decades and Morgan Stanley said prices may reach $150 within a month." As far as GM's concerned, causation don't 't make no never mind. The bottom line: the automaker's stock price ended the day at $16.22, a 33-year low. Automotive News [sub] attempts to put a brave face on it, spinning the loss as part of the larger stock market drop. No matter how you parse it, GM's still a high-cost, cash-burning, truck-heavy manufacturer leaking red ink from every pore of its North American ops, with no escape plan (although its CEO and top brass are well-protected). As this blog from the Wall Street Journal indicates, the Street is waking up to GM's death spiral, and it ain't that pretty at all. "By contrast, GM — which seemed to have covered itself well by selling assets before the buyout markets skidded to a halt last year — could end up with less than $1 billion by 2010, thanks to a combination of cash-draining losses and debt repayments, according to Lehman Brothers Holdings. Even if it tapped bank credit lines, it would by then have less on hand than the $10 billion or so analysts reckon it needs to support its everyday business."

The Detroit News is running a guest commentary today by UAW President Ron Gettelfinger that's as humble as it is helpful. Which is to say not at all. It turns out Mr. Gettelfinger (along with his union) has been intrigued by the whole "building more fuel-efficient cars" idea for some time now. He wishes Detroit had been as far-sighted and sage as he. Gettelfinger doesn't exactly gloat at the Black Tuesday slashing, since it ain't exactly great news for the UAW, but he does blame "industry, government and concerned citizens" for failing to plan for current conditions. Gettelfinger's implication is that if Detroit and DC had listened to the UAW's "Marshall Plan for the U.S. auto industry"– which was proposed "back when you could buy gas for $1.50 a gallon,"– the current orgy of shutdowns and layoffs wouldn't be happening. So, besides offering economic aid and free-trade measures to form a European bulwark against postwar communism, what did this "Marshall Plan" entail? Predictably, the major parallel is that Gettelfinger's plan involves the Government giving away huge amounts of money, preferably in areas where the UAW can easily sponge it up. Rather than giving consumers a tax credit to buy any fuel-efficient car they want, Gettelfinger would rather see government incentives pay for the production of UAW-made eco-whips. He also trots out the weary canard that increased CAFE standards "unfairly" cost the D3 more than their Japanese competition, and that this should be mitigated by… more government "incentives." 

As I've documented endlessly, my attraction to moving hunks of iron, plastic and rubber goes back as far as I do. My father was a pistonhead, my grandfather was a pistonhead and my great-grandfather was a schmate dealer born in Odessa around the time of the American Civil War. I mention this because as a kid I read Lee Iaccoca's autobiography. One of the lessons I took away from it (besides how hard he and Hank Ford II lobbied Nixon against airbags) was that the government bailout of Chrysler was needed because so many American jobs were at stake. Sure, corporate mis-management got the brand in trouble. But it was Uncle Sam's responsibility to not let them fail, according to Lee. Today we learned that Rick Wagoner defended The Big 2.8's inability to foresee how surging gas prices could gut the entire US SUV car industry. Assuming for a moment there is blame to be assigned (and we think there is), who gets it? The CEOs, for their blind devotion to easy body-on-frame profits? The government, for not being proactive and passing tougher CAFE standards years ago which would have forced the industry to think small? Or consumers, for buying so many socially-irresponsible hulking tanks when they simply did not need them? We passing the buck here. Who wants it?

In response to Honda's upcoming limited release of the FCX Clarity fuel cell car, Toyota has announced plans to start leasing the seductively named "FCHV-adv" in Japan later this year. If this is a beauty contest, FCX kicks FCHV's butt.  FCHV-adv's main claim to fame: a range of 760 – 830 km (472 – 516 miles). Long term durability of the fuel cell unit itself is "subject to ongoing R&D," which means it isn't there yet. Meanwhile, "Honda Motor Co.'s revamped fuel cell vehicle for leasing in California is rolling off a Japanese factory floor later this month." Forget Ford vs. Chevy; the real battle today is Honda vs. Toyota. Which begs the question: what happened to the GM Hy-Wire concept vehicle Wagoner showed off way back in 2002 as the The Answer? And lest we forget, where's the hydrogen for these vehicles going to come from? Oil?

Yes, we pat ourselves on the back. Why wouldn't we? As branding guru Al Reis once advised me "Tell 'em who you are, tell 'em that you told 'em and tell 'em again." Or something like that. Anyway, back in April, we reported that Porsche was finally putting DSG into their venerable 911, plus the usual we-need-something-for- existing-owners-to-lust-after power bump. Classic Driver confirms that the refreshed Carerra wil be blessed with a seven-speed double-clutch gearbox. Porsche calls their system Porsche-Doppelkupplung or PDK, which they invented, dammit! ("Porsche points out that its engineers developed the principle for motorsport some 25 years ago.") The updated car also also gets direct injection, debuted (to not much effect) on the Cayenne GTS. "The 3.6-litre Carrera models are up 20bhp to 345bhp, while the 3.8-litre Carrera S has jumped 30bhp, and now develops an impressive 385bhp." AND they're cleaner, more economical and .2 seconds faster from zero to 62mph. One thing we didn't foresee: new LED lights fore and aft. Now, when this PDK thing hits the Boxster S, we'll see just how fast I can drive backwards– if you know what I mean.  ;

Well, Forbes has another one of its famous "lists of stuff." [Ed: I challenged them to send us a top ten list of their top ten lists. No dice.]  This time, the company started by the guy who collected anything that wasn't nailed down offers a list of the ten most reputable global companies. Apparently that means companies people like the most (as opposed to sue the least). Among obvious favorites like Google, two car companies have made the grade. India's Tata conglomerate, which just picked up Land Rover and Jaguar for a song is beloved. (Although it should be remembered that Tata makes all manner of products from steel to tea). And as irritating as it is to those of us "in the know", Forbes's research seems to suggest Toyota has an unending bag full of goodwill. Note to Toyota: don't get cocky. You can bet the 1960 version of that list would have included Ford and GM.

San Francisco columnist Mark Morford has a round-up of doom and gloom on the energy front. After six paragraphs spent telling us that gas prices are high, staying high and might go higher– with enough links to build a good size fence– Morford finally gets down to the business of entertainment. Here's what the high energy future looks like to a man whose official bio proclaims that he writes about "politics, pop culture, sex, music, design, a wry and punch-drunk universe, vibrators, scotch, media, spirituality and small European cars. And sometimes, genital grooming." Got it? Right… "Carpooling will soar. People will walk, bike, scooter, take the bus, work shorter weeks, stroll and amble and hum a merry tune, reacquaint themselves with the neighborhood, telecommute, vacation locally, have more phone sex. They will shop locally to avoid skyrocketing shipping prices, buy less plastic, recycle. The era of cheap oil that enabled hideous urban sprawl will now quite possibly flip over and begin to enable the exact reverse … whatever that is." That's about it for the good bits. The rest is your boilerplate Big Oil Bush-bashing fear-mongering tripe. Still, was it as good for you as it was for me?

Once it was big shiny convertibles that caught the ladies' eyes. Then it was Corvettes, Lambos or anything else low, fast and expensive. But the times they are a-changin'. Yahoo! Green reports that hybrids are this generation's automotive codpieces. A survey done by GM during this year's Challenge X competition reveals that 88 percent of women say "they'd rather chat up someone who owns the latest fuel-efficient car versus the latest sports car." On top of that, 80 percent of American car buyers would rather talk with someone at a party who has the "latest fuel-efficient car" than someone with a sports car. And for the fashionists out there, 45 percent of "18- to 43-year-olds say it's a fashion faux pas nowadays to have a car that's not green or environmentally friendly." But does that now mean that those who buy the highest mileage cars are overcompensating? And what does that say about all those who put down deposits on Teslas and Volts? The mind– or something– boggles. 

Thought that the LF-A will be a brand diluting agent for Lexus? Well, seems like the Japanese have something a lot better in mind for that job. Lexus has announced plans to sell a "luxury Prius." Lexus will present their HPV (Hybrid Purpose Vehicle sounds cheesy enough to me) alongside the next gen Prius at the next North American International Auto Show. Why make a luxury version of the Prius? God knows. I can only guess that tree-hugger superstars that used to drive Priora complained about the car's increasing popularity and plebeian interior. For this rendering, I tried to add some IS headlights onto a Prius. The resulting hybrid hybrid looked plain dumb. Once I decided that the "ordinary L-finesse" wouldn't work, I opted for some manga lines that emphasize the car's expensive-toy status. You know, Toyota might want to forget about the Hybrid Purpose Vehicle appellation, considering the whole human papillomavirus thing.

[For more Avarvarii photochopistry, click here]

Nissan has revealed its modest refresh of the 2009 Xterra, and it's more offroady outdoorsy than ever. The once iconic, now ironic vehicle is still ready to tackle trails or haul your more traditional domestic possessions. The enlarged 4.0-liter VQ V6 carries over, with 261 hp and 281 lb ft of torque, hooked-up to a five-speed slushbox or a six-speed stick. Only a few comments here, because the refresh really is very modest… First, if there was ever a vehicle ripe for a diesel, it's this one. Plenty of Xterra owners travel long distances to get to their off-road adventures and/or take the rug rats to the water park. Xterra owners are not acceleration addicts (ipso facto) and the diesel clatter (God forbid) would go with the image. Towing? Yes. Towing. Second, as a solid "lifestyle" vehicle with a strong image, the Xterra needs some more "gee whiz" features. Refrigerated glove box, picnic table tail gate, built-in boogie board, something to jazz-it-up and make buyers forget about gas prices– at least for a moment or two. The new [available] roof-mounted off-road lights are a good start, as is the free [limited time] technology pack ICE. But desperate times call for killer apps. 

Click here for Pixamo gallery of the new xTerra

That RenCen money tree must be producing a bumper crop this spring. The custody battle over Cobasys between parents Chevron and Energy Conservation Devices (the loser gets custody) has reached the point where GM feels obliged to intercede (i.e. throw money at it). Cobasys makes the batteries for GM's mild hybrids. No other batteries will work in the vehicles, at least until they're redesigned in (all together now) 2010. Automotive News reports "three sources" told them GM is preparing to buy the floundering battery company. The irony: GM helped found Cobasys, then sold its share to Texaco (which later merged with Chevron). Just as spin-offs Delphi and American Axle continue to sap GM's waning resources, Cobasys now returns to haunt them. No one's saying what this acquisition will cost The General, but not to worry… they have plenty of money to get them to the end of the year.

Until now, Hyundai had told us about two engines in the upcoming Genesis sedan: a 375 horsepower 4.6-liter V8 and a 3.8-liter V6 with 290 horses. But data mining on the EPA website tells us that the 2009 Hyundai Genesis will also feature the same 3.3-liter V6 that's in the Sonata. The 3.3-liter V6 is/was schedded for the Genesis overseas; until now there was no news that Hyundai was planning to offer it to us North Americans. In the 2009 Sonata, this engine makes 249hp– which sounds like a more than suitable number for an entry-level Genesis powerplant, considering that cars like the BMW 3-Series start with 230 ponies. Uh-oh. Hyundai's depending on the value equation for the Genesis to sell. When the new model clocks-in with 249 horses in base trim, and Infiniti's G35 offers 300+, they risk losing the stat-sheet buyers. Now I can hear the clicking already "But the Genesis doesn't compete with the G35." Yes, but– all cars that overlap in price can and do compete with one another. One last note on the smaller V6. The EPA ratings for the 3.3 are 19/27; the bigger 3.8-liter V6 is rated at 18/27.